The Climb Continues

Plan for December 20, 2023

The S&P sure did a beautiful job of showing off my levels and plan today, completely ignoring my bearish plan and playing right into my more likely one…

Tuesday is likely to bring more drifting. ES could get a fade of today’s bullish drift, although it’s already gotten a fade of the push to 4800, so it doesn’t need to. We don’t have much in the way of catalysts tomorrow, but we do have trend and the path of least resistance in favor of the march to test All-Time High’s.

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The test of 4808.25, ES’s current ATH, is likely to bring a sweep, at least in the short term, as algos take advantage of both resting orders and new orders at this obvious level.

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Beyond ATH’s, we have new heights and new levels!

The test of 4808.25 did sweep, passing through the level before finding support in the mud of a minor support level coupled with VWAP. Then, we drifted to new heights, first finding resistance at the 4817 (exactly) intraday level I added in the morning on stream. We retraced back to 4808.25 on the nose. We’ve since tested and broken the next at 4820 as we continue to the next bull target: 4827.

Wednesday
10am Consumer Confidence

Thursday
8:30am - GDP & Unemployment

Friday
8:30am - PCE
10am - Consumer Sentiment

The most important news catalyst is Thursday morning. The market doesn’t need much reason to go higher. The Santa Rally is in full force and it will take a big surprise to stop it. These catalysts are the most likely time remaining this year.

Keep in mind that volume will drift off each remaining trading day, especially between Christmas & New Years. Trading will get slower and more sloppy. The market is closed both Monday December 25 and Monday January 1. As we get into January, volume will return as the big players get back into their offices from the holiday.

Until then, you know the drill. Until we break a major support, we continue upward. Here are the next targets: